If the simple interest on a certain sum of money is Rs.11,220 at the rate of % per annum for 8 years and 3 months, then what is the principal amount (is Rs. rounded off to the nearest rupee)?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 8,242
Given that
Simple interest (S.I.)= Rs.11,220
The rate (R) of % per annum
Time = 8 years and 3 months = 8(1/4) years = 33/4 years
Formula used
S.I. = PRT/100
where, P = principal, R = rate of interest, T = time
Calculation
⇒ 11220 = (P × 33/2 × 33/4)/100
⇒ P = 11220 × 800/(33 × 33)
⇒ P = Rs. 8242